Item 16 - Enterprise Resource Planning System Software and Implementation Services

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Enterprise Resource Planning System Software and Implementation Services July 15, 2025 Page 4 The City is committing to a minimum three-year agreement with no annual subscription increases. After the third year, the agreement includes seven, optional, one-year renewal periods, that include a subscription uplift that is capped at three-percent (3%). This locks in 10 years of pricing with the ability to cancel in any year after year three. Since subscription pricing is based on both modules utilized and the number of City staff in a given year, the not-to-exceed amount of$5,026,843 has been calculated to allow for fluctuations. During the selection process, the Teller Cashiering system was also selected; however, during planning, the team determined implementing that system was not feasible at this time. The team will re-evaluate replacing the existing cashiering system after the implementation of the ERP begins and may bring the item back to the City Council at a later time for approval of the additional cost. The Oracle Fusion Cloud system will be implemented in two overlapping phases. Phase 1 will be the Human Capital Management (HCM), Learning Management, and Payroll modules. This phase will last 16 months, with a targeted go-live of January 1, 2027. Phase 2 will be the ERP Financial Management modules. This phase will last 18 months, with a targeted go-live of July 1, 2027. The one-time implementation services cost is a not-to-exceed amount of $4,798,915 (see Exhibit 1). The selected platform allows for modular expansion, enabling the City to add new features or functional areas such as procurement enhancements, budgeting tools, or workforce planning as future needs arise. This flexibility ensures the system can evolve alongside the City's operational and strategic goals, supporting long-term efficiency and performance. Modules are licensed by either the number of total city employees or by the number of specific named users, which may be adjusted on an annual basis. To support ongoing adaptability and periodic staffing updates, it is recommended to authorize the City Manager, or their designee, to execute future ordering documents as necessary, provided that the total costs do not exceed the approved aggregate amount. This authorization allows the City to respond promptly to emerging needs to procure additional modules or services without delay, while maintaining strict fiscal control. Such flexibility is critical to maximizing the investment in the Oracle ERP system and ensuring it continues to meet the City's evolving requirements. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funding for this project has been planned for and has been accumulated in the fund balance of the Information Technology fund. Funding of$3,000,000 is currently available in the Information Technology Department under the IT Projects accounting unit (10920149) for FY 2025-26 and the fund is projected to have funds to cover the